The pandemic, stellar vacation-home sales and regulatory turbulence combined in 2021 to spark a boom in private-label securitizations backed by mortgages on second homes and investment properties.

A total of 37 such deals were completed through October of this year involving more than 51,000 mortgages on properties that were not a primary residence (in other words, second homes and investment properties), according to HousingWire’s analysis of private-label securitization deals over the period. The mortgages used as collateral were valued in aggregate at $15.2 billion as of the closing of the transactions.

The mortgage-collateral volume and total deal count in 2021 dwarfs even the combined totals from the prior two years: 

• 2020 — 12 deals involving 13,300 loans valued at $3.9 billion.
• 2019 — 15 deals involving 17,492 mortgages valued at $5.4 billion.

The analysis is based on an examination of data supplied by the Kroll Bond Rating Agency covering more than 160 private-label residential mortgage-backed security (RMBS) issuances over the first 10 months of this year. 

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